The Financial Incentives For Buying An EV
If you’re thinking about making the switch to an electric vehicle (EV), there are a few things you’ll need to take into account. One of them is finding a place to charge your car. This can be tricky, as not all gas stations have EV charging stations.
Luckily, there are a few financial incentives that can help you offset the cost of installing a home charger or finding a public one. Here’s a breakdown of some of the most popular EV charging station incentives.
The federal government offers a tax credit of up to $7,500 for the purchase of a new EV. This is a great incentive if you’re thinking about making the switch to an electric car. Some states also offer their own incentives for purchasing an EV. For example, California offers a rebate of up to $2,500 for the purchase of a new EV. This can help offset the cost of purchasing an EV and make it more affordable.
Car Owners in the USA with plug-in hybrid EVs and all-electric cars are entitled to a federal income tax credit of up to $7,500. This is eligible on cars purchased after 2010. Benefits like Point of Sale Grant Incentives can be applied at the time of purchase. This reduces the purchase price of a BEV. To pay lower or zero VAT or pay no purchase tax buyers can avail of VAT and Purchase Tax Exemptions. In some US State, EV owners after the purchase of a BEV receive a monetary payment. These are the Post-purchase rebates that are given to consumers after they have purchased the vehicle.
These government schemes and incentives help reduce the upfront purchase price. Also, a reduction in purchase tax is applicable for BEVs owners when calculated based on the CO2 emissions of the vehicles. In the recent past, the White House has introduced two bills to encourage EV adoption and expand EV infrastructures. Joe Biden, the President, has recently announced a $174 billion investment for electrification and plans to replace the government’s vehicle fleet with electric vehicles.
The revised methodology of the Singapore Government is now calculating the variable component of the road tax for EVs. The government has also offered a 45% rebate of up to $20,000 on the additional registration fees (ARF) tax. This scheme applies to private new EVs, rental EVs, and taxis registered between 1 January 2021 and 31 December 2023.
In 2020, Singapore introduced ten double-decker electric buses and has recently announced to go fully electric in coming times. By 2040, the Singapore government plans to purchase about 5,800 fully electric. Government also plans to provide high-powered chargers and swappable batteries for electric two wheelers.
To provide sustainability to their plan of action, the Singapore Government has planned to establish about 60,000 EV charging stations in the next 10 years. Singapore EV Charging Infrastructure will consist of 40,000 in public stations & around 20,000 in private premises. Under the “Safe and Future-Ready Foundation” government and Tesla plans to build a charging network in Singapore.
From 1 January 2021, all existing EV owners for next 3 years will have the flat component fee waived in Singapore. This scheme is valid till 31 December 2023. The full $700/year payment will only be applicable from 1 January 2024.
UAE insightfully has implemented incentives for sustainable and clean electric transport on the federal and local levels. The government has offered to reduce registration fees for going green with electric vehicles. By 2030, the UAE government targets to have 42,000 electric vehicles on roads. In the year 2017, Dubai Electricity and Water Authority (DEWA) and the Road Transport Authority (RTA) launched free parking spaces for all EV users registered in the DEWA EV Green Charger Initiative. This initiative was modified and extended till December 31st, 2021. It was made open for all non-commercial EV users post January 1st, 2020.
With rising fuel prices in recent Demand for electric vehicles up by 200%. Upon registration EV owners in UAE can also avail of a free Salik tag. Government plans to install ultra-fast EV charging facilities on UAE highways to reduce issues with ‘range anxiety’ among car owners.
The UAE government introduced EV Green Charger Card that can then be used to charge at any public charging station. This will assist EV users in making payments through the app or opting for a monthly payment option. Approximately around 750 EV charging stations have been set up across public places like malls in Dubai for free.
China globally has the largest and the most expensive incentive programs for EV. These measures have led China to grow fast in the plug-in electric car markets. Beside substantial subsidies and tax breaks, China’s local governments also plan to reintroduce cash subsidies to boost sales of electric vehicles. In the past, between 2009-2021 China’s government has introduced subsidy programs. Since then almost around $14.8 billion has been handed out to EV buyers. With recent decline in EV sales in the country post Covid-19 pandemic China is planning to extend past subsidies that were set to expire in 2022.
These incentives and subsidies provided by the Chinese government are said to be extended for the next two years. These EV subsidies will target bigger models priced under $44,459, with more than 300 kilometers per charge driving range. China being the world’s largest EV market offers subsidies to Chinese as well as non Chinese auto companies like Tesla. This is majorly done to promote massive growth of EV in the automobile industry of the country. China Association of Automobile Manufacturers, has stated a figurative value of EV sales in China increasing by 47 percent. This is approximately five million by 2022.
Mauritius’ Ministry of Renewable Energy & Public Utilities has a long term energy strategy. This strategy is designed as a part of vehicle policy between 2009-2025. This policy aims on promoting the use of lower emission vehicles. To accomplish this the government is now encouraging the use of electric vehicles. . The government has proposed several incentives to promote the purchase of electric and hybrid vehicles. By introducing fiscal policies, incentives and concessions government is encouraging industries to identify and act upon energy efficiency investment opportunities. To start with Mauritius government has introduced environmentally-friendly buses.
Owing to the short driving distances, EV technology is particularly fit for a small nation like Mauritius. In contrast to ICECs, which have an excise duty rate of 50% in the well-liked 1,001 – 1,600 c.c. range, hybrids have a rate of 25%.
The medium-sized ECs are exempt from taxes. Luxury ECs have a zero percent duty rate for power under 180 kW and a 25 percent duty rate for electricity exceeding 180 kW. Comparatively speaking, their typical luxury counterparts are subject to a 100% duty rate. Additionally, the cost of registering and renewing a motor vehicle each year is 50% less for hybrids. Furthermore, the cost of purchasing a fast charger for an electric vehicle can be subtracted from an individual’s taxable income.
There are also a number of public and private EV charging stations that offer discounts or free charging for EVs. These can be a great way to save money on charging costs, and they’re often easy to find.
So if you’re thinking about making the switch to an EV, there are a number of financial incentives that can help you offset the cost of purchasing and charging an electric car. We, at Numocity, can help you with the entire process and guide you through.